Problem set 4 questions

Problem set 4 questions - Econ 162B-90, 91 Spring 2008...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 162B-90, 91 Kenny Christianson Spring 2008 due: March 14 PROBLEM SET NUMBER FOUR 1. Assume that the American Cancer Society is successful in convincing the federal government to ban the production and consumption of cigarettes in the U.S. economy. If cigarettes were to be made illegal, what are the likely effects on production and consumption in the market? Explain and show graphically. 2. Assume that you are given the following information on the U.S. economy (in billions of dollars): wages 7448 net interest payments 595 consumption 9225 government spending 2523 rents 55 exports 1468 profits 3555 imports 2230 personal taxes 1354 investment 2209 capital consumption allowance 1615 income receipts from rest of world 691 income payments from rest of world 633 income earned by households but not received 4081 income received by households but not earned 3409 a. Find GDP using the expenditure approach. b.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Problem set 4 questions - Econ 162B-90, 91 Spring 2008...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online